Can the Rally Continue?

In this episode of "The Markets," Chris Hussey interviews Ashok Varadhan, co-head of Global Banking and Markets at Goldman Sachs, about the current state of the markets. Ashok acknowledges the market's significant rise since the April lows, supported by low volatility, but notes the potential for disappointment given current pricing. While remaining constructive on US equities due to ongoing rate cuts and anticipated fiscal tailwinds, he expresses caution regarding monetary debasement and advises hedging against macro volatility using currency, interest rate, and index options. The conversation also covers diversification into assets like Bitcoin and gold as a hedge against fiat currency, and the potential impact of a prolonged government shutdown on economic data and market volatility. Ashok suggests staying invested but protecting oneself with convexity, recommending buying index puts on equities and calls on the dollar.